What are the consequences if a Deck Medic franchisee attempts to transfer the agreement without approval?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (16) Franchisee and transferee acknowledge and agree that Franchisor's approval of the Transfer at issue does not constitute Franchisor's approval of future or other Transfers or the waiver of the requirement that Franchisor must approve such future or other Transfers in accordance with this Agreement;
- (17) The Transfer must be made in compliance with all applicable laws;
- (18) The Transfer of the Franchised Business, the lease for Franchisee's non-residential Administrative Office (if applicable), and the assets of the Franchised Business shall be made only in conjunction with a Transfer of this Agreement, approved by Franchisor in accordance with and subject to this Article 14 and the terms and conditions of this Agreement; and
- (19) Franchisor's consent to a Transfer of any interest that is subject to the restrictions of this Agreement shall not constitute a waiver of any claims it may have against Franchisee or deemed a waiver of Franchisor's right to demand strict and exact compliance with this Agreement by the transferee.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
Based on the 2024 Deck Medic Franchise Disclosure Document, if a franchisee attempts to transfer the franchise agreement without the franchisor's approval, it will not be recognized as valid. The FDD states that the transfer of the franchised business, the lease for the franchisee's non-residential administrative office (if applicable), and the assets of the franchised business must be made only in conjunction with a transfer of the agreement that is approved by Deck Medic.
Deck Medic emphasizes that their approval of a transfer does not indicate approval of any future transfers. Each transfer requires separate approval from Deck Medic, ensuring that all conditions are met and that the new transferee meets their standards. This protects Deck Medic by ensuring that any new franchisee is qualified and capable of maintaining the brand's standards and reputation.
Furthermore, Deck Medic's consent to a transfer does not waive any claims they may have against the franchisee or waive their right to demand strict compliance with the agreement by the transferee. This means that even if a transfer is approved, Deck Medic retains all rights and can still enforce the original agreement's terms against both the transferring franchisee and the new transferee. This provision is designed to safeguard Deck Medic's interests and ensure ongoing adherence to the franchise agreement.